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Estate
Planning FAQ
Probate is the manner of administering the
property (estate) of a decedent (person
whom passed) by a personal
representative under the jurisdiction of a county probate court.
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Generally probate is only necessary when when
a person dies leaving property in his or her own name.
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The person who administers the property
during the probate process, usually appointed by the court on the
basis of being named in the will.
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A living trust is is the name given to a
trust created during an individual's lifetime. It is created
for the benefit of the individual during his or her life, and
after death allows for the assets to be managed for the benefit of
the beneficiaries.
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First, probate avoidance is the primary
reason to establish a living trust. Second, privacy is an
important element because without a trust, the financials of your
estate become public record. Third, is estate tax
savings. If your estate is more than the amount excluded
from federal estate taxes, it could be subject to estate tax when
you die. And lastly, proper management of assets. A
living trust allows you to reduce the risk of inexperienced and
unskilled management of property after your death.
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First and foremost is selecting an estate
planning attorney. Your financial advisor is also an
excellent individual to aid you in starting the trust, and most
work closely with their own attorneys so you can be assured that
you are getting the best help possible.
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A document giving someone authority to act on
your behalf in handling your affairs. For example, to sign
checks, pay bills, contract medical services or sell
property. The authority can be very broad such as allowing
the individual to do anything you can do, or very narrow such as
only allowing them to sell a certain piece of property.
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Written power of attorney which contains the
words "this power of attorney shall become effective upon my
disability" or similar words. It must be signed by you
before any disability to become valid.
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Yes. If you are disabled your spouse
can still sign checks and make withdrawals on joint bank accounts,
however, your spouse cannot sell anything owned jointly like
stocks, your house or a cottage.
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As long as you are competent you can revoke
your durable power of attorney. The revocation should be in
writing and delivered to the agent (the person whom has the power
of attorney) and any third parties with who the agent is dealing.
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First, you (not a court) will select your
agent. Second, it will give you and your family the peace of
mind knowing that you have named someone to handled your
affairs. And lastly, it can save time and the expense of a
court proceeding.
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Portions of this
information have been taken from The Probate & Estate Planning
Section State Bar of Michigan |
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